sustainable forest management report 2015 – 2016 forest management report 2015 2016...2015 –...

Sustainable Forest Management Report

2015 – 2016

Document prepared November 2016 Queries or feedback on this document are welcomed. Please contact [email protected] or send comments to the Certification and Compliance Manager, PO Box 5316, Launceston, Tasmania 7250.

mailto:[email protected]

Table of Contents 1. INTRODUCTION ............................................................................................................... 1

1.1 Forico Pty Limited Environmental Sustainability Policy ......................................... 1 1.2 Summary................................................................................................................ 2

2. TASMANIAN FOREST MANAGEMENT UNIT ................................................................ 5 2.1 Forico Pty Limited Forest Management Unit Area ................................................ 5 2.2 High Conservation Value / Biodiversity / Species Diversity Management .......... 10

3. PRODUCTIVE CAPACITY OF THE TASMANIAN FOREST ESTATE ......................... 19 3.1 Harvest Area, Size and Distribution ..................................................................... 19 3.2 Certified Volume Sold to Customers ................................................................... 21 3.3 Contribution to Carbon Cycles ............................................................................. 22

4. SYSTEMATIC FOREST MANAGEMENT ...................................................................... 23 4.1 Certification Coverage ......................................................................................... 23 4.1.1 AFS and ISO 14001 ............................................................................................. 23 4.1.2 Chain of Custody Certification (AFS and FSC) ................................................... 23 4.1.3 FSC Forest Management .................................................................................... 23 4.1.4 NATA ISO 17025 ................................................................................................. 24

5. FOREST MANAGEMENT MONITORING AND OPERATIONAL COMPLIANCE ........ 25 5.1 Forest Operational Assessments ........................................................................ 25 5.2 Plantation Establishment and Maintenance Activities ......................................... 28 5.3 Tasmanian Forest Nursery .................................................................................. 32

6. SOCIAL AND CULTURAL ENGAGEMENT .................................................................. 35 6.1 Stakeholder Engagement .................................................................................... 35 6.2 Cultural or Social Needs and Values ................................................................... 37

7. MAINTENANCE AND ENHANCEMENT OF SOCIO-ECONOMIC BENEFITS ............. 39 7.1 Production and Consumption .............................................................................. 39 7.2 Investment in the Forest Sector ........................................................................... 39 7.3 Employment and the Community......................................................................... 40 7.4 Recreation and Tourism ...................................................................................... 41

8. APPENDIX I. SUMMARY OF KEY PREFORMANCE INDICATORS ........................... 42

Sustainable Forest Management Report 2015 - 2016 Page 1

1. INTRODUCTION

1.1 Forico Pty Limited Environmental Sustainability Policy


1.2 Summary

The Sustainable Forest Management Report is published annually and provides stakeholders with a summary of Forico Pty Limited (Forico) activities from 1 July 2015 to 30 June 2016. The Sustainable Forest Management Report 2015 – 2016, provides an overview of Forico’s performance relating to clearly identified sustainable forest management criteria – economic, environmental, cultural and social.

Forico became Forest Manager of the freehold assets purchased by the Fund Manager New Forests Asset Management Pty Limited, on the 5 September 2014. The ownership of these assets is split between (i) the Tasmanian Forest Investment Sub Trust (TFIST) as landowner; and (ii) the Tasmanian Forest Operating Sub Trust (TFOST) owner of the forest operational, and processing facilities. Third party share-farms were also transferred across to the new owners at that time.

At 30 June 2016, Forico manage 173,849 hectares of freehold land and manage another 7,159 hectares of third party land, resulting in 181,008 hectares of total land estate under management control in Tasmania.

Forico manages a healthy and sustainable plantation estate (96,242 hectares) – to ensure the productive potential of the resource is optimised. The natural forest component of the estate (81,194 hectares) is managed for conservation, environmental, biodiversity, cultural, and social values in accordance with Forico policies and procedures. There is no intention or consideration to harvest any native forest tree species.

Operations carried out within the Forest Management Unit (FMU) by Forico employees and third party contractors includes:

• forest seedling nursery activities; • tree improvement program; • site preparation and plantation establishment and maintenance operations; • harvesting, processing, and exporting of wood fibre and whole logs to customers; • monitoring and auditing of operations, including investigations to ensure appropriate corrective or preventative

actions are implemented. • plantation property inspections; • insect monitoring and control (where required); • firebreak maintenance works; • ecological low intensity and hazard reduction burning; • identification, maintenance and enhancement of biodiversity and conservation values within the natural forest; • asset protection through wildfire suppression response; • safety and environmental compliance responsibilities; • evaluation of wood fibre and production testing at the Fibre Technology Laboratory; and • stakeholder consultation and engagement.

In excess of 350 contractor personnel have been engaged to undertake the task of site preparation, plantation maintenance, harvesting, cartage, and processing operations in Tasmania.

Forico has a strong and ongoing commitment to sustainability principles in its forest management and resource procurement activities. The company can demonstrate continual improvement in environmental, social and economic management, through the maintenance of certification to ISO 14001, the Australian Forestry Standard (AS 4708-2013) and Forest Stewardship Council (FSC) Forest Management.

During July 2015, an FSC Certification Body (Soil Association) undertook an assessment of Forico to assess whether the Company complies with the Principles and Criteria of the FSC Forest Management Standard [interim Standard – Australia Woodmark Generic Standard v 5.1 May 2014].

Forico was pleased to announce in November 2015 that the company had achieved FSC Forest Management certification. This is a clear demonstration that Forico is committed to achieve the highest certification credentials which align with the Company’s strategic objectives. In a media release on 23 November 2015, Forico CEO Bryan Hayes commented:

“This is a significant strategic achievement for our company, our staff and for stakeholders in our business. We particularly thank all the external stakeholders who contributed submissions directly to Forico…..”

In addition to having the forest areas (plantations and natural vegetation) certified under a sustainable forest management system, all Forico hardwood and softwood plantation wood fibre supply in Tasmania is certified to the Australian Standard – Chain of Custody for certified wood and forest products (AS 4707) and the Forest Stewardship Council Chain of Custody Standards (FSC-STD-40-003, FSC-STD-40-004, FSC-STD-40-005). Chain of Custody is an inventory control system that tracks wood fibre or forest products from a forest through to the end use by the customer (covering all phases of the cycle including ownership, transport, processing, and sale). The ability to offer customers the guarantee and assurances that the product purchased can be traced to a sustainable origin is highly desirable. Forico has positioned itself in the advantageous position of having the ability to market wood fibre products as either AFS or FSC Forest Management certified. Dual certification will offer flexibility to meet customer requirements.


Image 01: Forico FSC Forest Management Certificate Issued November 2015


Image 02: Forico Pty Limited AFS Certificate Issued August 2015


2. TASMANIAN FOREST MANAGEMENT UNIT

2.1 Forico Pty Limited Forest Management Unit Area

The Forest Management Unit (FMU) consists of freehold and third party private property of which Forico has management control. This incorporates the Permanent Estate (freehold) and Semi-Permanent Estate (third party private property under management) and is referred to as the FMU Area throughout Tasmania.

Of the 173,849 hectares in the permanent estate, 89,083 hectares consists of productive plantation land (Eucalyptus nitens, Eucalyptus globulus, Pinus radiata). The semi-permanent estate incorporates 7,159 hectares of productive plantation land.

Permanent Estate Hectares Plantation 89,083 Natural Vegetation 81,194 Other * 3,572 Sub-Total 173,849 Semi-Permanent Estate Hectares Plantation 7,159 Sub-Total 7,159 TOTAL 181,008

Other * includes infrastructure (access, quarries, utilities)

Table 01: Breakdown of Forest Management Unit Area as at 30 June 2016


Map 01: Forest Management Unit Map


2.1.1 Permanent Forest Area – Productive and Natural Forest The Permanent Estate includes all freehold land area managed by Forico. A detailed analysis of the Forico Permanent Estate Land Classification is found in Chart 1 and Table 2 below.

Chart 01: Permanent Estate land classification as at 30th June 2016

With respect to the FMU composition, species and distribution, hardwood and softwood plantations constitute 51% of the Permanent Estate – 89,083 hectares (85,719 hectares hardwood and 3,364 hectares softwood respectively) from a total of 173,849 hectares. Natural forest coverage accounts for 46.7% of the total (81,194 hectares).

Operational Area FMU Area (hectares) Percentage Production Forestry Areas Hardwood Plantation 85,716 49.30% Softwood Plantation 3,364 1.90% Agriculture - Suitable for Conversion to Plantation 3 0.00% Total Production Forest Areas 89,083 51.20% Reserve Areas Cultural Heritage 441 0.30% Flora 7,366 4.20% Fauna 5,396 3.10% Landscape 1,424 0.80% Soil / Water 20,400 11.70% Geomorphology 1,017 0.60% Social 1,298 0.70% Sub-Total Reserves 37,343 21.50% Native Forest Areas 43,851 25.20% Total Natural Forest Area 81,194 46.7% Infrastructure Roads / Firebreaks / Access 2,751 1.60% Quarries 69 0.00% Utilities 753 0.40% Sub-Total Infrastructure 3,572 2.10% PERMANENT FOREST ESTATE 173,849 100.00%

Table 02: Permanent Estate Land Classification as at 30 June 2016

Production Forestry Area - Hardwood,

49%

Production Forestry Area - Softwood, 2%

Natural Vegetation, 47%

Infrastructure, 2%


2.1.2 Percentage of Reserve Areas Compared to Total Permanent Estate

Natural vegetation covers 81,194 hectares of the 173,849 hectares of Permanent Estate. This equates to 47% of Forico Permanent Estate that is covered by natural vegetation.

37,343 hectares is classified as informal reserve areas. This equates to 21.5 % of the Permanent Estate. The area of reserve for each biological diversity value on Forico Permanent Estate, consists of a total of 37,343 hectares. The reserves on Forico Permanent Estate consists primarily of soil and water values (55%), flora (19.7%) and fauna (14.4%). 3,659 hectares within the natural forest zone is formally reserved under the Conservation Covenant process and 2,755 hectares is reserved within Vegetation Management Agreements.

Examples of natural and cultural values contained within the informal reserve areas include:

• streamside buffers; • natural vegetation containing flora and / or fauna values (eg: Wedge-tailed Eagle nests); • cultural heritage vales (Aboriginal or European Historic Values); • geomorphological features (important landforms eg: sinkholes, karst features); • landscape (areas of aesthetic / intrinsic values).

Photograph 01: Talbots Lagoon, Surrey Hills


2.1.3 Plantation Age Distribution Within the Forest Management Unit

Age Class Hardwood Distribution (Hectares) Percentage

Fallow 8,557 9% 0-3 years 5,241 6% 4-7 years 8,739 9% 8-11 years 31,049 33% 12-15 years 23,688 26% 16-19 years 11,250 12% 20-24 years 3,848 4% 25+ years 442 0% Total 92,816 100%

Table 03: Hardwood plantation age-class distribution (Permanent and Semi-Permanent Estate)

Chart 02: Hardwood plantation age-class distribution (Permanent and Semi-Permanent Estate)

Age Class Softwood Distribution (Hectares) Percentage

Fallow 428 12% 0-3 years 150 4% 4-7 years 0 0% 8-11 years 1,163 34% 12-15 years 511 15% 16-19 years 509 15% 20-24 years 520 15% 25+ years 144 4% Total 3,426 100%

Table 04: Softwood plantation age-class distribution (Permanent and Semi-Permanent Estate)

9%6%

9%

33%

26%

12%4%

1%

Fallow

0-3 years

4-7 years

8-11 years

12-15 years

16-19 years

20-24 years

25+ years


Chart 03: Softwood plantation age-class distribution (Permanent and Semi-Permanent Estate)

2.2 High Conservation Value / Biodiversity / Species Diversity Management

The Forico High Conservation Value (HCV) Assessment and Management Plan that is available on the Company website www.forico.com.au. The document provides a comprehensive overview of Forico management objectives within the natural forest areas. Through a systematic and structured approach Forico has been able to identify values, prioritise any potential maintenance and enhancement activities, and any associated monitoring and reporting requirement within the 81,194 hectares of natural forest through the FMU.

As detailed in the High Conservation Value (HCV) Assessment and Management Plan, there are numerous biodiversity / HCV values that are identified across the FMU.

Specific examples of conservation strategies adopted throughout the natural vegetation contained within the Forico Tasmanian Forest Estate include:

2.2.1 Low Intensity Ecological Grassland Burning

As part of Forico’s obligation under the grassland Conservation Covenants and Vegetation Management Agreements, targeted low intensity ecological burning is carried out (primarily during spring) to ensure the native grassland ecosystem within the Tasmanian Forest Estate is maintained and enhanced. During the reporting period 2015– 2016:

• 67 hectares of the estate was burnt under 8 separate low intensity burn plans for ecological purposes.

Climatic conditions dictate the length of the spring burning program.

Within the grassland areas within the FMU, burning is conducted in accordance with the prescriptions described in the Forico Surrey Hills Grassland Management Plan, which defines the optimum burn frequency to maintain and enhance the biodiversity and conservation values contained within these extremely important and valuable assets. Low intensity ecological burning of the grasslands also assists in providing acceptable biodiversity outcomes for other non-Eucalypt species – for example the rare crowded leek orchid (Prasophyllum crebriflorum), in addition to fauna species including the Ptunarra brown butterfly.

Low intensity burning is used as a technique to encourage regeneration of degraded / vulnerable natural forest habitats within the broader non-production zones in addition to provide a receptive seed bed for natural forest succession strategies. 8 hectares of hazard reduction burning occurred within the plantation resource, in preparation of the establishment program. In addition, 3 hectares of gorse burning occurred in readiness of the native forest revegetation program.

13% 4%

0%

34%

15%

15%

15%4%

Fallow

0-3 years

4-7 years

8-11 years

12-15 years

16-19 years

20-24 years

25+ years

http://www.forico.com.au/


Photograph 02: Forico low intensity ecological grassland burning

`

Photograph 03: Forico employee conducting low intensity ecological burn


2.2.2 Natural Forest and Riparian Rehabilitation Activities

With respect to the natural forest operations and activities undertaken within the FMU between the period 1 July 2015 – 30 June 2016:

• 107 hectares of weed control was treated with herbicide to contain or eliminate the infestation. • 56 hectares of weed control mechanically treated with the use of a mulching machine (predominantly

gorse). • 58.2 hectares of native forest was regenerated to natural forest (53.3 hectares planted, 4.9 hectares

sown) • 53.3ha planted with native eucalypts (Eucalyptus obliqua, Eucalyptus ovata) and Acacia melanoxylon,

and 4.9 hectares sown with native seed (Eucalyptus obliqua, Eucalyptus amygdalina, Eucalyptus ovata and Eucalyptus amygdalina).

• 6.0 hectares of plantation regenerated for native forest rehabilitation – including an area restored for a Wedge Tailed Eagle reserve.

• Length of watercourses restored o Class 1 3,000m rehabilitated; o Class 2 1,500m rehabilitated; o Class 3 800m rehabilitated; and o Class 4 10,000m rehabilitated.

Photograph 04: Native forest rehabilitation

Photograph 05: Rehabilitation of Class 2 Streamside reserve


2.2.3 Flora Species Management – Orchid Monitoring

Forico has entered into collaborative arrangements with the Department of Primary Industries, Parks, Water and Environment (DPIPWE) Threatened Species Section and voluntary organisations including Threatened Plants Tasmania (TPT) to undertake orchid monitoring within the native grassland areas on Surrey Hills in addition to the Henry Somerset Conservation Reserve located at Railton. Due to the longevity of the native grassland monitoring project, the information and results are incorporated in numerous external scientific journals and publications. Species monitored include crowded leek-orchid (Prasophyllum crebriflorum) and tailed spider-orchid (Caladenia caudata).

Photograph 06: Crowded Leek-orchid Tailed Spider-orchid (courtesy of TPT)

2.2.4 Fauna Species Management - Tasmanian Devils

Tasmanian devils are listed as endangered under the Tasmanian Threatened Species Protection Act 1995 and the Commonwealth Environment Protection and Biodiversity Conservation Act 1999 due to the population decline attributed to the Devil Facial Tumour Disease (DFTD). Forico are currently assisting with research projects to better understand the distribution of Tasmanian devils across the Tasmanian Forest Estate.

Project 01: Response of Native and Introduced Carnivores to Habitat Change and Fragmentation (UTAS / FPA)

The aim of the project is to investigate (i) does disturbance and the composition of the landscape influence the presence and number of spotted tailed quolls, devils and feral cats to be found in each habitat type; (ii) can we identify the structural components (remnants, old trees, windrows in plantation, regrowth and farmland) for predators to preference specific habitat types with particular reference to plantations; (iii) how do Tasmanian devils and spotted tailed quolls use plantations, and is their presence influenced by co-occurrence of the introduced predator the feral cat and is there any indication of avoidance strategies between the species activity in space or time.

Remote sensor cameras were located throughout the landscape. Currently this information is being analysed and generating some interesting results indicating some differences in the way the three predator species are using the landscape. Preliminary analysis indicates there are clear differences in habitat use and some differences in seasonal activity between the spotted tailed quoll, Tasmanian devil and feral cat.

The results demonstrate that the presence of spotted tailed quolls and Tasmanian devils are closely linked and both are highly influenced by elevation. Spotted tailed quolls are found more often where there is a high percentage of native forest around the site, while devils are influenced by the frequency of human use of buildings in the vicinity, distance to roads and presence of preferred prey species. The results for cats predominantly focused on small and medium prey species, while the next best model included habitat and lack of a mature forest canopy, indicating a preference for the more fragmented habitat on the margins of agricultural land.


Project 02: Save the Tasmanian Devil Program - (Wildlife Management Branch (DPIPWE) / School of Biological Sciences (UTAS).

The Save the Tasmanian Devil Program (STDP) Annual Monitoring project commenced in 2014. Eight sites around Tasmania were selected for annual surveys, including three sites which are located on Forico-managed land (Kempton, Takone and Woolnorth). The aim of the Annual Monitoring surveys is to determine if the populations of these sites are in continued decline, are stable, or are recovering in the presence of DFTD, as well as to collect other relevant samples for further understanding of DFTD and its evolution. The 2016 monitoring trips were the third of five anticipated surveys of these sites.

The Annual Monitoring surveys use standardised trapping protocols to allow for comparisons across sites and years. Forty traps are set for seven consecutive nights, giving a total of 280 trap-nights per survey.

Area # 1: Kempton

The Kempton survey site encompasses an area of approximately 25 square kilometres, with the entirety of the site lying on Forico-managed land. DFTD is thought to have arrived in the area in 2004, so Kempton is considered a long-term diseased site.

The 2016 Annual Monitoring trip was run between 5-12 of May. In total, 20 individual devils were caught, which was slightly less than in 2015 but higher than in 2014. This inter-annual variation highlights the importance of regular, long-term surveys for monitoring population trends. DFTD prevalence was consistent with the previous surveys, with three of the 20 animals (15%) showing signs of disease. As would be expected in a long-term diseased site, the population is dominated by one-year-old animals; no devils over 3 years of age were captured (Figure 1). Three of the four females over 1 year old had young in the pouch.

In addition to the 20 devils, two spotted-tailed quolls and two eastern quolls were captured.

It is anticipated that the Kempton site will be surveyed again for the Annual Monitoring project in 2017.

Figure 1. Tasmanian devil captures by age at Kempton, 2014-2016 annual monitoring survey results

Area # 2. Takone

The Takone survey site encompasses an area approximately 30 square kilometres, part of which lies on Forico-managed land (the remainder is on State Forest). DFTD was first detected at the site in 2010.

The 2016 Annual Monitoring survey was run between 17 - 23 of June. In total, 12 individual devils were caught. Capture rates at this site have declined across the three years of the Annual Monitoring project, but this may not be entirely due to DFTD. The decline in captures corresponds with harvesting at various localities within the area, which may temporarily reduce available habitat within the survey area. Additionally, in 2016 the site had recently been trapped by a separate researcher from UTAS, which may have resulted in trap fatigue and an associated reduction in capture rates. Two nights of the survey had reduced trapping-effort (37 and 38 traps set respectively, rather than the standard 40) due to vandalism, and a few traps were regularly disturbed by a dog (based on muddy paw prints on the outside of the trap). Because of the low overall capture rates for the trip, it is unlikely that this

0

2

4

6

8

10

12

14

16

18

1 2 3 4

Coun

t of i

ndiv

idua

ls

Estimated devil age (years)

AM 2014

AM 2015

AM 2016


substantially affected the number of devils captured, but there may have been a couple of missed opportunities. Once again, the possible impact of extrinsic factors on captures highlights the importance of regular, long-term monitoring for identifying real population trends.

Figure 2. Tasmanian devil captures by age at Takone, 2014-2016 annual monitoring survey results

Disease prevalence at the site was relatively low, with only a single devil showing signs of DFTD (8.3%). One out of the five females captured had pouch young; this was a one-year-old animal, indicating precocial breeding - a characteristic of diseased areas - is occurring at the site. Precocial breeding is defined as when an animal is born in an advanced state and able to feed itself almost immediately.

In addition to the 12 devils, 11 spotted-tailed quolls were captured during the survey.

It is anticipated that the Takone site will be surveyed again as part of the Annual Monitoring project in 2017.

Area # 3: Woolnorth

The Woolnorth site (Buckby’s Road) was not trapped by the STDP in 2015-16, but a survey of this area is being planned for 2016-17.

Project 03: Tasmanian Devil Facial Tumour Disease Project – South Eastern Surrey Hills (West Pencil Pine)

The Tasmanian devil population at West Pencil Pine, South Eastern Surrey Hills on Forico managed land, has been monitored by a team of international researchers from the University of Tasmania’s Menzies Institute for Medical Research, School of Biological Sciences and School of Medicine, with support from the University of Southampton and DPIPWE since the beginning of DFTD epidemic outbreak in February 2006. The population at West Pencil Pine continues to provide critical information for the management of Tasmanian devils and DFTD. This is the only population in Tasmania where devils and tumours have been systematically monitored (at three month intervals) from the beginning of the epidemic outbreak. There are now ten years of comprehensive data on devils and tumours which can be analysed from a broad range of disciplines to understand both the impact and evolution of DFTD on Tasmanian devils and for developing possible strategies aimed at protecting the species from extinction. In 2016-2016 Devil trapping trips took place 17 - 28 August 2015, 9 - 20 November 2015, 19 - 29 February 2016, and 16 - 26 May 2016.

Researchers have seen evidence for the first time that some Tasmanian devils are capable of naturally recovering from the deadly Devil Facial Tumour Disease, blood samples analysed at Menzies finding that six wild devils with DFTD developed an immune response to the cancer cells. Four of these devils recovered, but one relapsed and DFTD re-occurred. Until now there has been no convincing evidence that wild devils could recover from DFTD. This study suggests that some wild devils can develop an immune response to the cancer on their own.

Biological Sciences researcher, Dr Rodrigo Hamede, who established the field patterns of recovery over a 10-year period at the site in north-west Tasmania, said the results of this study could help with understanding how devils were evolving to co-exist with DFTD. “As some devils are responding to the cancer it suggests the population can evolve to live with the disease. To further understand the adaptive and evolutionary response of devils to this disease

0

5

10

15

20

25

1 2 3 4+

Coun

t of i

ndiv

idua

ls

Estimated devil age (years)

AM 2014

AM 2015

AM 2016


we need to continue the long-term monitoring of wild devil populations,” he said. This natural immune response might be the result of evolutionary forces between the devils and tumours over several generations. The results of this research, RJ Pye, R Hamede, HV Siddle, A Caldwell, GW Knowles, K Swift, A Kreiss, M E Jones, AB Lyons, GM Woods. Demonstration of immune responses against devil facial tumour disease in wild Tasmanian devils, appeared in Biology. Letters October 19, 2016 http://dx.doi.org/10.1098/rsbl.2016.0553.

Photograph 07: Tasmanian Devil monitoring, Surrey Hills

2.2.5 Conservation of Ptunarra brown butterfly and Poa grassland habitat

The project involves monitoring population trends of Ptunarra brown butterflies and the introduced predator the European wasp, and the condition of Poa dominated grassland habitat on Surrey Hills. Data has been collected from the site since 1997 from a variety of sources including Threatened Species Section (DPIPWE), University of Tasmania (UTAS), Forest Practices Authority (FPA), Forico, and Cradle Coast NRM. The project involves:

• Monitoring of Ptunarra brown butterflies, other butterflies, and European wasp along five permanent transects established in 1997 and additional sites as required to better understand population trends, impacts of threats, and the efficacy of management actions such as planned burning (detailed above) of Poa grasslands;

• Collection of data and information according to established protocols, including photo points, vegetation cover, and documentation of historic management such as stock grazing and fire;

• Analysis will be conducted, comparing data collected in 2015- 2016 with observations and data collected from the same sites in 1997-2002 by Bell (2002), Gunns Limited (2004 - 2014) and PhD project/DPIPWE (2011-2013);

http://dx.doi.org/10.1098/rsbl.2016.0553


Photograph 08: Male Ptunarra brown butterfly

In 2016, ten sites at Surrey Hills including the five long-term monitoring sites established in 1998 (i.e. Peak Plain, Dairymaid South, Racecourse Plain, South Hatfield Plain and Thompsons Park) and an additional five monitoring sites established in 2010 (i.e. Dairymaid Plain North, Twyford Creek, Moory Mount, Hatfield Plain and Westwing Plain) were monitored for butterflies and European wasps.

Photograph 09: Prime Ptunarra brown butterfly habitat 6 months after burning

2.2.6 Correlations between silvicultural practices and the occurrence and abundance of the Tasmanian Giant Freshwater Crayfish (Astacopsis gouldi)

This PhD project compared the occurrence and abundance of Astacopsis gouldi in plantations and native forest, correlating these responses with a wide range of habitat variables to build statistical models to predict either the occurrence or abundance of this crayfish. The study compared eucalypt plantations, pine plantations and native forest, and the environmental variables will include measures of in-stream habitat, riparian (bankside) conditions and upstream catchment features and land-use.


2.2.7 Understanding and Predicting Water Outcomes in Catchments Supporting Forico Forest Plantations

This project intends to produce a plan and guidelines that, when implemented, would achieve that objective and thereby produce Tasmanian-related scientific evidence of the interaction between forest plantations and water resources (quantity and quality) at different scales. This information could then be used by the company as required, including certification and licence-to-operate processes.

The plan, when implemented, will integrate existing hydrological knowledge with new monitoring and modelling to better understand the management of Forico plantations in relation to water resources in Tasmania. This report documents existing Tasmanian infrastructure and previous studies related to water resources assessment relevant to Forico as background information to develop a more comprehensive and targeted water resources monitoring and evaluation plan. Any such plan would be targeted at complementing the company’s sustainability and reporting objectives.


3. PRODUCTIVE CAPACITY OF THE TASMANIAN FOREST ESTATE

3.1 Harvest Area, Size and Distribution

The merchantable species within the Tasmanian Forest Estate are plantation species only, namely:

• Eucalyptus nitens; • Eucalyptus globulus; and • Pinus radiata.

The plantation harvest schedule is determined by inventory based modelling. Forico continually monitors the growth of the forest resource through extensive forest inventory programs to ensure an accurate calculation can be made of sustainable yield throughout the entire FMU.

Photograph 10: Harvesting within a plantation

Eucalypt growth plots (EGP) are important as they provide long term data describing how the plantation is growing and performing throughout the rotation. These growth plots are distributed spatially throughout the FMU to capture the various site conditions, soil categories, and growth rates. 43 growth plots were measured during the reporting period. Additionally, to capture information relating to the productive plantation resource, temporary inventory assessments are randomly distributed. Forico commenced an inventory program during July 2015 measuring 4,832 plots covering an area of 15,441 hectares.

3.1.1 Ratio of Cut Volume Versus Growth Volume per Annum Within the Permanent Estate

Species Tonnes (GMT)* Total Pulpwood Sawlog Peeler Firewood

Pinus radiata 1,169 511 0 0 1,680 Eucalyptus globulus 178,862 0 211 0 179,073 Eucalyptus nitens 1,077,147 0 75,204 0 1,152,351 Total 1,257,179 511 75,415 0 1,333,104

Table 05: Quantity of Material harvested within the 2015 - 2016 financial year (Forico Permanent Estate)

* GMT = GREEN METRIC TONNES


Photograph 11: Harvesting of plantation material within a plantation

Wood yield modelling generates an estimation of future wood volumes based on current known resources. This allows optimisation of the timing of harvest of each unit of resource in the interests of long term sustainability. Measurement of how much resource is cut from the Permanent Estate can then be compared with the modelled volume for the same time frame. Sustainability can be measured by ensuring the harvest volume does not exceed the growth volume in the long term.

In the Permanent Estate within Tasmania, the cut volume of Eucalyptus and Pinus species was 1,333,104 green metric tonnes (GMT) compared to a growth volume of 1,458,565GMT during the reported period.

• Eucalypt plantation – 1,382,274 growth of merchantable GMT: 1,331,424 GMT cut. This equates to a ratio of 1:1.04 (for every tonne of timber cut 1.04 tonnes was grown).

• Pine plantation – 76,291 GMT growth of merchantable GMT: 1,680 GMT cut. This equates to a ratio of 1:45.4 (for every tonne of timber cut 45.4 tonnes was grown).

Year Merchantable Eucalyptus spp Merchantable Pinus radiata Cut Growth Ratio Cut Growth Ratio

2014 - 2015 874,664 1,423,708 1:1.6 5,536 58,925 1:10.6 2015 - 2016 1,331,424 1,382,224 1:1.04 1,680 76,291 1:45.4

Table 06: Comparison of Harvesting Rates within the FMU by Species (GMT)

The standing volume of the FMU (incorporating the Permanent Estate of the FMU only) currently equates to approximately 12.9 million GMT. Based on the harvested figures incorporated above, 1,333,104 GMT harvested, the percentage of harvested volume compared to standing volume at the end of the reporting cycle was 10.3%.

Year Standing Volume Volume FMU harvest Percentage Cut 2014 - 2015 11,990,000 880,200 7.3% 2015 - 2016 12,900,000 1,333,104 10.3%

Table 07: Comparison of Proportion of FMU harvested (GMT)


3.2 Certified Volume Sold to Customers

With respect to customer demands and expectation, all product despatched during the reporting period was sold to customers with either (i) AFS / PEFC, and / or (ii) since November 2015, FSC FM demands.

A total of 25 vessels of wood fibre product were sold to 6 major customers during the reporting period. All shipments were sold with sustainable forest management Chain of Custody certification coverage. A total of 1,252,729 GMT of plantation wood fibre was sold with associated certification claims for the period 1 July 2015 – 30 June 2016.

Photograph 12: Surrey Hills Mill in the snow

Forico is in the advantageous position of having the ability to market and sell wood fibre products to customers as either AFS (PEFC) or FSC Forest Management certified. Dual certification offers flexibility to meet customer expectations or requirements.

Photograph 13: Grooming the stockpile at Burnie Port


3.3 Contribution to Carbon Cycles

Growing trees absorb one of the major greenhouse gases – carbon dioxide – from the atmosphere through photosynthesis and storing the carbon. The combination of carbon sequestration in growing trees and the long-term carbon storage in wood products represents a significant net sink and store of carbon.

The methodologies used to account for carbon sequestration are complex and have strict parameters to determine whether areas can be incorporated in the carbon sequestration (capture) calculations. The identified areas that are not included in the biomass calculations:

• Plantations less than age 2 (accounted for having a zero volume); • plantations established before 1991; • with an original land-use of native forest; and • areas that have been harvested or destroyed.

To this end, Forico manages approximately 19,000 hectares of plantation that is eligible for carbon sequestration calculations. Forico currently sequestered 105,626 tonnes carbon during 2015 - 2016. The table below illustrate that the quantity sequestered for 2014 – 2015 was 116,733 tonnes a reduction of 11,107 tonnes from the preceding year. The variation can be attributed to Forico adjusting the yield prediction and anticipated harvest recovery scheduled from the plantation resource.

Year Eucalyptus spp C Sequestered (Tonnes)

Pinus radiata C Sequestered(Tonnes)

Total

2014 - 2015 114,389 2,344 116,733 2015 - 2016 102,589 3,037 105,626

Table 08: Comparison of Carbon sequestered within eligible plantations of the FMU

It is important to note, that the reported figures only accounts for the productive Eucalyptus nitens, Eucalyptus globulus and Pinus radiata component of the managed area.

The Forico natural forest management zones consisting of 81,194 hectares has not been included in the carbon sequestered figures. As a commitment to maintain and enhance the natural forest areas for conservation and biodiversity values, Forico has undertaken a project to investigate the potential to apply the principles of natural ecosystem accounting as described in the guidelines recently released by the United Nations. The fundamental requirement of ecosystem accounting methodologies is to record the flows of ecosystem services and their associated benefits using techniques consistent with ecological measurement and aligned to economic and accounting standards. Using this approach, the aim is to achieve an outcome that integrates environmental and ecological information to assess impacts on economic and financial returns.

Forico at this point does not trade carbon commercially, and participates in no other carbon measurement. The company is currently looking at reviewing economic opportunities for ecosystem services and benefits from the natural forest estate.

Photograph 14: Plantations contribute to carbon sequestration


4. SYSTEMATIC FOREST MANAGEMENT

4.1 Certification Coverage

• ISO 14001 (Environmental Management Systems); • AS4708 (Australian Forestry Standard (AFS)); • AS 4707 (AFS Chain of Custody (CoC)); • FSC FM Woodmark Australia Generic Standard v5.1; • FSC-STD-40-003, FSC-STD-40-004, FSC-40-005 (FSC Chain of Custody); and • NATA (National Association of Testing Authorities) ISO 17025 – Fibre Technology, Tasmania.

Forico operations, activities and Management System are assessed through external surveillance and recertification audits. Internal audits are undertaken by qualified employees on a regular basis to compliment the external audits.

The current certificates, to which Forico is aligned, are made publically available on the Company website – www.forico.com.au.

Photograph 15: View from Companion Hill Fire Tower, Surrey Hills

4.1.1 AFS and ISO 14001

During July 2015 – June 2016, a recertification audit was carried out during August 2015. During May 2016, to account for seasonality of operations throughout the calendar year, the first stage of the auditing cycle occurred in autumn. The 2016 audit cycle will be completed in October 2016, when the audit report will be submitted to Forico. The 2015 recertification audit was successful, with DNV GL (Certification Body) preparing a public summary report, that is available on the Forico website – www.forico.com.au.

4.1.2 Chain of Custody Certification (AFS and FSC)

The recertification audit was conducted in August 2015 (using DNV GL) to assess Forico’s ability to trace material inputs and product outputs through the supply chain. Forico engages with sub-contractors at various points in the supply chain, with the outsourcing agreements and declarations compliant with the strict Chain of Custody standards. 4.1.3 FSC Forest Management

An external third party audit was conducted during July 2015. The Certification Body was Soil Association Woodmark. The success of the assessment enabled Forico to commence making FSC Forest Management claims when the certificate was issued in November 2015. A copy of the audit report is available on the FSC International database, at http://info.fsc.org/certificate.php.



http://info.fsc.org/certificate.php


4.1.4 NATA ISO 17025

The Fibre Technology Laboratory at Ridgley had an external reassessment audit conducted during May 2016.

Staggered between these external auditing requirements are internal review of documentation, systems and processes that occur on a 6 monthly cycle.

Photograph 16: Wood fibre analysis, Fibre Technology Laboratory

Photograph 17: Wood fibre analysis, Fibre Technology Laboratory


5. FOREST MANAGEMENT MONITORING AND OPERATIONAL COMPLIANCE

5.1 Forest Operational Assessments

5.1.1 Forest Practices Authority External Forest Practices Audits

Forest Practices Authority (FPA) audits monitor the compliance for the management of biological diversity, soil and water resources, cultural heritage and landscape values in compliance with the Tasmanian Forest Practices Code 2015.

A total of 6 Forico active Forest Practices Plans FPPs were randomly selected by the FPA and audited in accordance with their current procedure. This represents approximately 5% of the plans certified in the previous calendar year.

The FPA audit scoring system (Table 5) details the scoring system adopted and performance rating descriptors.

Performance Rating Description Score

Sound Addressed all judgement criteria and achieved the acceptable result.

3.0

Below Sound Have not addressed all judgement criteria and / or implemented plan as prescribed, which may result in adverse impact.

2.0

Unacceptable Non-compliant and has not adequately addressed judgement criteria or achieved an unacceptable result.

1.0

Not Assessable • The condition / situation does not occur eg: high erodibility. • Operations have not commenced. • Insufficient or no objective evidence to make a judgement.

N/A

Table 09: Forest Practices Authority Performance Rating Definitions and Scoring System for FPP Audits (Source Forest Practices Authority)

The average score Forico received for each element in the FPP audits is tabulated below. The table and associated graph provides an interpretation of the comparison between:

• Forico FPP external assessments undertaken independently by the FPA (n = 6); • Entire Tasmanian FPP external assessments undertaken independently by the FPA (n = 57); • Forico FPP internal assessments undertaken by a suitably qualified internal auditor (n = 5).

Forico performed well in the annual external FPA FPP audits for the 2015 – 2016 period with acceptable scores achieved throughout in line with the FPA expectations.

Criteria FPA External Audit of Forico

Forico FPP Internal Audit

Procedural Issues 2.9 2.9 Roading 2.9 3.0 Harvesting 2.9 3.0 Reforestation 2.8 3.0 Fuels, Rubbish and Emissions 2.7 3.0 Special Values 3.0 3.0

Table 10: Comparison of External (Forest Practices Authority) and Internal (Forico) Forest Practices Plan Audits 2015 – 2016


5.1.2 Forest Practices Plan Internal Audits

Internal FPP audits were carried out throughout all regions of the FMU to supplement those assessments undertaken by the Forest Practices Authority (FPA). Operations were stratified to assess and verify a cross section of harvesting and site preparation operations.

Evidence was gathered through all stages of the FPP process – plan preparation, correct and appropriate prescriptions applied, and operational compliance in accordance with the Forest Practices Code 2015. To demonstrate compliance (i) evidence was gathered, (ii) documentation reviewed, and (iii) staff interviewed, to capture the following elements of the planning process and subsequent operational activity:

• Procedural issues; • Roading; • Harvesting; • Reforestation; • Fuels, rubbish and emissions; and • Special value (natural forest) management application;

A total of 5 Forest Practices Plans (FPPs) were assessed internally consisting of 3 harvesting FPPs and 2 plantation establishment FPP (where the harvesting operational phase was also assessed during the audit). The operational sites were randomly selected across the FMU.

Forico performed well in the internal FPP audits with average scores meeting the FPA benchmark for all elements.

Photograph 18: Haulage road restored and drained


Photograph 19: An extraction track corded To ensure operational compliance in wet weather

Photograph 20: A compliant Forico harvesting operation


5.1.3 Forest Operations Monitored Against the Company Standard

A Forest Operations Monitoring Report is an internal procedure that lists the relevant requirements of the Forest Practices Code 2015 and any other Compliance requirements (including the management of HCVs within and immediately adjacent to the operational boundaries). The Forico Forest Operations Monitoring Reports must be completed at least once monthly for each active harvesting operation and one site preparation operational audit per site.

By undertaking this compliance obligation, any potential impacts of the operation (harvesting and / or plantation establishment) on maintenance and conservation of soil and water resources, for example, will be recorded. Preventative and corrective actions will be allocated to restore / rehabilitate the site.

During the period 1 July 2015 – 30 June 2016, the number of operations reports required compared to number of reports submitted was:

• 100% (240/240) - harvesting operations; and • 100% (155/155) – plantation site preparation and maintenance operations;

were monitored and aligned to operational prescriptions.

Forest Practices Code 2015 prescriptions include guidelines on suitable machinery to operate efficiently on the site; landing size; road location and maintenance commitments. Establishment and plantation maintenance compliance requirements focus on soil cultivation, soil erodibility classifications that will reduce the threat to soil integrity and compaction.

It should be noted that although formal audits are completed on a monthly basis, operational staff visit harvesting and site preparation operations at least weekly to ensure compliance with the operational requirements.

5.1.4 Meet the Company Standard for Submission of Harvesting Completion Notices

A Harvesting Completion Notice is a process that summarises the harvesting operation activities and verifies that the harvesting phase of the operation has been completed according to the Forest Practices Code 2015 and operational planning requirements. It triggers a variety of internal processes including reforestation requirements.

The reporting protocol ensures any operational specific prescriptions have been adhered to and environmental compliance requirements followed (eg: soil and water conservation / maintenance, flora and fauna management).

During the reporting period, 79 from 79 harvesting completion notices were completed (100%).

5.1.5 Percentage of Plantations Thinned under a Solid Wood Regime that have had Damage Surveys; and the Percentage of Plantations Containing Tolerable Damage Levels

Thinning operations enable the trees remaining to grow on a longer rotation, producing larger trees that are sold primarily as sawlogs, thus adding value to the final crop.

152 hectares of plantations in the FMU was harvested under a solid wood regime. The entire area consisted of Pinus radiata (softwood plantation) species. All plantations had damage surveys undertaken (100%) with all plantations thinned to an acceptable standard (100% undamaged).

5.2 Plantation Establishment and Maintenance Activities

5.2.1 Site Preparation Activities

A total of 5,082 hectares of harvested plantations were cultivated during the reporting period that will subsequently be planted. Spot cultivation site preparation methods result in minimal site disturbance, minimises the risk of unacceptable soil compaction and potential erosion, with the benefit that slash and debris is retained and left in situ to encourage nutrient recycling. Appropriate plantation treatments need to consider:

• Soil type; • Slope limits on cultivation; • Topography; • Elevation; • Erosion control measures; • Water quality protection measures; • Drainage • Appropriate species selection and spacing; • Weed control; • Mammal browsing control; • Pest and disease control; and • Fertiliser application.

Plantations have cultivation, and site preparation activities undertaken in the summer / autumn period, to have the ground in an establishment ready state to initiate the planting program during the spring period for optimal results.


5.2.2 Plantation Establishment

Between July 2015 – 30 June 2016, 3,898 hectares of harvested plantation were established following site preparation and pre-planting maintenance activities. In terms of species composition, this consisted of:

• Eucalyptus nitens – 3,434 hectares. • Pinus radiata – 464 hectares.

Forico is progressively increasing the plantation establishment program. 3,898 hectares was planted during 2015 – 2016, 464 hectares of was a species change (12%), so the more appropriate species was established. The plantation establishment program will increase to 6,500 hectares during 2016 - 2017. This dramatic increase in plantation coverage demonstrates a commitment to ensuring the establishment and harvesting programs comply with sustainable harvest yield projections.

Photograph 21: A newly grown Eucalypt seedling

The Somerset Nursery is currently growing seedlings to be planted in the areas prepared for spring 2016 establishment program.

Optimal growing conditions are created for the time of plantation establishment, to avoid the requirement to conduct expensive maintenance spraying operations with pesticides following establishment. Plantations are established at the most appropriate time of the year to optimise growth – spring. This timing will alleviate the requirement for intervention and the unnecessary application of herbicides and / insecticides, and minimise requirements to control populations of browsing mammals.


Application of a controlled release fertiliser at the time of establishment encourages the opportunity to optimise seedling health and vitality. To minimise leaching and optimise the availability of nutrients to the newly planted seedling, the fertiliser tablets are physically placed beneath the tree roots at the time of establishment. Fertiliser is released in a controlled manner over a 12 – 18 month period; and the use of netting /protection around individual trees along vulnerable boundaries, further controls the impact of browsing of the established species.

These establishment protocols encourage a healthy, viable and productive plantation that will minimise the need for intervention with pesticides and lethal browsing mammal control.

5.2.3 Percentage of Plantations that have had Survival Surveys Undertaken, and the Percentage of Planted Area for the Previous Calendar Year that has Survived

Assessment of plantation survival and efficient plantation establishment demonstrates an opportunity to maximise forest productive capacity. Forico establishes plantations during spring, with survival counts undertaken once trees have adapted to the new growing environment. However, on 28 October 2015, plantation establishment was suspended by Forico due to extremely dry conditions and the onset of drought that would have resulted in significant seedling mortality. The balance of the seedlings established for the 2015 – 2016 period were planted in autumn 2016 when sufficient soil moisture became available.

It is a requirement of the FPP to undertake a stocking assessment of these plantations twelve months after the completion of establishment, to ensure an adequate tolerance threshold is achieved for regeneration.

The average survival percentage across all plantations was 94.4% for the 2015 - 2016 planting programme.

5.2.4 Integrated Pest Management

Forico employ an Integrated Pest Management (IPM) Strategy that incorporates current comprehensive information on the life cycles of pests and their interaction with the environment. This information, in combination with the latest control methods, is used to manage damage through the most economical means, whilst accounting for impacts to people, property, and the environment.

Forico deploys a range of innovative approaches to enhance the condition of the FMU. These innovations include the deployment of:

• leading genetics in the plantation estate that demonstrates resilience to natural pests and disease; • silvicultural practices that promotes plantation health and vitality that provides resistance and reliance to

pests and disease; • Monitoring programs incorporated throughout the FMU; • Investment in internal and external research and development; and • Professional staff and contractor resources.

Where required, herbicides are applied both prior to and post planting operations – to control targeted weed species that would otherwise suppress the productive capacity of the established plantation. Between 1 July 2015 – 30 June 2016, 3,898 hectares were established to plantation.

• Total treated area was 3,567 hectares. • 3,159 hectares treated through broad scale aerial applications. • 408 hectares were sprayed through manual spot applications. • Remaining plantation areas were either manually slashed, or no weed control was considered

necessary.

• 91.5% of the 2015 – 2016 planting program was treated with herbicide.

Herbicides are applied in accordance with strict Forico policies and procedures and comply with state and federal legislation and regulation. This will ensure that appropriate safeguards and controls are implemented at the time of the pesticide application. Operational constraints incorporated during the process include buffers adjacent to sensitive boundaries including streamside reserves and machinery exclusion zones.

5.2.5 Mammal Browsing

Commercial harvesting has been undertaken to control browsing mammals on establishment or later aged plantations. To ensure that a structured approach to game management / control is achieved, permits are required from the Department of Primary Industries, Parks, Water, and Environment (DPIPWE) to harvest game. A Game Management Plan has been prepared by Forico prior to the issuance of Wildlife Management Permits. Part of the permit conditions is to supply numbers of the quantities of targeted animals (eg: Bennett’s wallaby, Pademelons, Brushtail possums).

Professional hunters (contractors) are deployed to undertake shooting and / or trapping of browsing mammals. Forico employs skilled, qualified contractors to control mammal populations. Maintaining numbers of species harvested, allows trends in mammal populations to be assessed.


5.2.6 Formal Annual Review of Chemicals Used in Reforestation Activities

During July 2016, a Plantation Health Review occurred that incorporated an assessment of chemical usage in plantation activities for the reporting period. The workshop involved internal staff (Chief Operating Officer, Plantation Operations and Services Manager, Plantation Coordinator, Certification and Compliance Manager, Operational Foresters). The workshop included but was not limited to:

• Review of the amount of each chemical and fertiliser within the Forico FMU; • Efficacy of the chemicals used; • Environmental effects of chemicals; • Review of new formulations that may provide greater efficacy; • Review of chemical and technological developments; • Review of insect management (Integrated Pest Management Programmes); • Review of any reported incidents on the Safety Health and Environment (SHE) Incident Reporting

Database.

5.2.7 Percentage of area burnt due to Unplanned Fires

93 hectares of natural vegetation and 276.9 hectares of plantation were impacted by wildfire events during 1 July 2015 – 30 June 2016.

Forico has a Fire Action Plan which provides details of how the Company employees and contractors achieve the delivery of fire management objectives. This includes response procedures relating to responsibility, preparedness, detection and suppression of fires, and available resources. The Fire Action Plan is utilised in conjunction with:

• Forest Practices Plans; • Memorandum of Understanding with the Tasmanian Fire Service; • Forest Management Plan; • HCV Assessment and Management Plan.

Fire mitigation methods include the strategic establishment of firebreaks around the perimeter of plantations, maintenance of an accurate and up to date GIS including the location of roads / tracks, firebreaks, waterpoints, helipads, gates, areas of special significance requiring protection.

Photograph 22: Forico Fire-fighters in action at a Fire-pump Refresher Training Day

Training firefighters in the appropriate fire fighting techniques and supplying the appropriate fire fighting equipment and Personal Protective Equipment (PPE) to qualified staff is required.


5.2.8 Percentage of Forest Management Unit lost due to Pest and Disease Outbreaks or Other Naturally Occurring Damage Agents

There were no identified areas of plantation or natural forest in the Forico Permanent Estate lost during the 2015 – 2016 period due to pest and disease outbreaks or other naturally occurring agents.

Plantation health monitoring has demonstrated that during the periods of the year where the potential for insect damage is greatest, regular monitoring and assessments are conducted throughout the FMU to ensure the health and vitality of the resource is maintained. If damage exceeds specified tolerance thresholds, then aerial spraying application may be considered as part of an Integrated Pest Management programme.

Photograph 23: Image of a healthy Forico plantation

5.2.9 Percentage of Forest Management Unit Monitored for Insect Damage Agents

Insecticides may be applied when insect damage exceeded accepted damage thresholds, impacting on the health and vitality of plantation species and could ultimately potentially lead to mortality of the crop. The following statistics provide clear quantifiable information demonstrating that Forico complies with the principles of IPM:

• During the plantation health monitoring period, the plantation resource in the FMU that contained a susceptible plantation crop = 96,242 hectares.

• It was determined that systematic monitoring would occur on 47,553 hectares (49%). • The plantation coupe area requiring spraying = 0 hectares. • Actual areas within the plantation coupe area sprayed = 0 hectares.

As a requirement of the FSC certification process, in September 2015, Forico submitted a request for a temporary derogation to FSC International to permit application of alpha-cypermethrin. Although no insecticide was applied during the 2015 – 2016 period, that does not mean that insecticide treatment will not be required during the 2016 – 2017 insect cycle. Forico’s Integrated Pest Management Strategy details that pesticides are applied as a final control measure.

5.3 Tasmanian Forest Nursery

As there was a Eucalyptus and Pinus radiata planting program through the 2015 – 2016 period, the nursery grew and despatched a total of approximately 5.01 million seedlings (internal and external supplies): With respect to the proposed 2016 spring planting program, the quantity of seedlings that were sown in November 2015:

• 13.5 million plantation seedlings were sown; • 30,000 native seedlings of various species – sown for revegetation and rehabilitation activities.


Photograph 24: Forico Somerset Nursery

All the Eucalyptus nitens seed was sourced through an open pollinated tree improvement program. Forico has established a network of company owned and managed seed orchards to ensure improved traits are selected and grown to optimise quality and performance for a variety of site conditions. This will permit specific seed to be allocated to precise climate, ground, soil, topographical site conditions. The selection of the correct seed and species, for the correct site is paramount.

Photograph 25: Eucalypt flower with seedling capsules


5.3.1 Number of Environmental Incidents relating to Nursery run-off

None of the water samples taken of water leaving the Somerset Nursery exceeded threshold limits; hence there were no environmental incidents. The monitoring at the nursery is conducted on a six-monthly basis (June and January each year). During the reporting period for Forico, the assessments were conducted in July 2015 and January 2016. Water samples collected illustrated that nursery operations are not having an impact on the water quality of the local stream.

Photograph 26: Sowing of Eucalypt seed

5.3.2 Percentage of Water Tests Completed; and the Percentage of Those Water Tests that Exceed Health Guidelines

To maintain and protect the Forico plantation estate, spraying operations may be required to enhance the productive viability of the site.

Systematic water sampling occurs from sensitive watercourses that are subject to pesticide treatment (herbicides and / or insecticides). The Australian Drinking Water Guidelines (ADWG) sets upper limits for the chemical levels in the water.

Water sampling is undertaken across Forico managed plantation sites where chemical residues have the potential to move off-site and present a concern for the environment, neighbours or other stakeholders. Water samples are taken prior to spraying, immediately after spraying and then after the first significant rainfall event. All water tests are completed by contracted staff and Forico employees (trained in Water Sampling for Chemical Residue Detection) as per the Company Standard.

Implementing an Integrated Pest Management (IPM) Strategy, ensures that a systematic decision making process is followed, with the application of pesticides only considered as part of the decision making process whereby the IPM programs evaluate the appropriate control method both for effectiveness and risk including the targeted spraying of pesticides.

10 formal water samples were collected from broad scale spraying operations undertaken in sensitive locations during the reporting period. All samples returned detection values below regulated threshold levels. Asset protection in the form of firebreak spraying occurred, in addition to spot spraying of noxious weeds required in compliance with legislative obligations. Codes of Practice and Forico Standard Operating Procedures were adhered to during the application of all chemicals.

Pesticides are used as part of a suite of sustainable forest management control alternatives available to a Forest Manager through an integrated pest management approach.


6. SOCIAL AND CULTURAL ENGAGEMENT

6.1 Stakeholder Engagement

6.1.1 Use of Local Businesses

Forico has prepared a Local Procurement Procedure that details the company’s desire to ensure service and supply requirements for operations contain the maximum amount of local content in order to generate the maximum economic and social benefits for the local area or region.

The contractor workforce totalled in excess of 350 employees for the period.

6.1.2 Community Engagement and Consultation

Forico has a community consultation database to capture stakeholder engagements. This database captures stakeholder engagement activities and events and records this information against identified stakeholder and property details. All appropriate staff members have been trained in the use and have been provided with follow up coaching if required.

As an example of community engagement, Forico are pleased to be associated with the Beacon Foundation and the Forest Education Foundation to work with a number of schools in north western Tasmania as to focus on opportunities related to the local plantation industry through classroom workshops and field experiences (specifically with grade 9 – 10 year students). Forico supports the project financially to ensure the program is delivered effectively. The project has achieved positive early results:

• Involved working with a school in a regional area to deliver a range of student learning experiences; and • It has established a working relationship with a key industry stakeholder and generated a template for

further opportunities to interact with other school networks.

Photograph 27: Stakeholder engagement by Forico staff

Forico is committed to engage with stakeholders in a respectful and transparent manner.

During the period of 1 July 2015 – 30 June 2016, there have been no requirements to implement the Forico complaint, grievance or dispute resolution process.

The following set of figures represents the range of engagements that have occurred within the period 1 July 2015 – 30 June 2016. A total of 202 issues or events were raised by stakeholders during the period.


Chart 4: Stakeholder engagement – stakeholder issues raised

To gain a clearer understanding of the type of individual or stakeholder group that has been consulted or engaged – the issue raised was subsequently assigned to a stakeholder category for clearer interpretation. There were 153 distinct or individual stakeholders who engaged with Forico during the 2015 – 2016 timeframe. However as one stakeholder can participate in more than one event, the total number of stakeholders engaged during the period was 218.

Chart 5: Stakeholder engagement - stakeholders consulted

13%

12%

11%

10%8%7%

7%

6%

6%

4%3%

3% 2% 2% 2% 2%

1%

1%

1%

Community Communications

Access

Neighbour Communications

Support

Query

Operation Impacts

Environment

Certification

Complaint

Weeds and Vermin

Research

Safety

Local Government Issue

Fire Risk

Education

Boundary Fences

Supplier Interest

Employment

Mineral exploration

37%

20%8%

7%

6%

4%4%

3% 3%

3% 3% 1%1%

Neighbours

Government and Statutory Bodies

Non-Timber Forest Products

Research Organisations

Associations and Peak Bodies

Politicians

Environmental Non-Government Organisations

Lessees and Lessors

Education, Colleges and Schools

Forest Industry Managers

Tourism and Events

Aboriginal Groups

Contractors


6.1.3 Maintenance of Meaningful Dialogue to Promote Stakeholder Participation in Forest Management

Forico has proactively engaged with stakeholders during the preparation of two critical Certification and Compliance documents, namely the Forest Management Plan and the High Conservation Assessment and Management Plan.

Forico has located the key documents on the Company website (www.forico.com.au) within the “Policy and Resource Download” page, to enable quick and easy access to the documentation.

Forico website (www.forico.com.au) has continued to be populated and updated with as much information as possible to inform interested and affected stakeholders of Forico forest management prescriptions.

• Forico key Company Policies; • Forest Management Plan; • High Conservation Assessment and Management Plan; • Annual Sustainable Forest Management Report; • Relevant Chain of Custody documentation (eg: Product Group Schedule); and • Independent third party external audit reports.

Forico welcomes and invites feedback from the public on all documents.

In addition to notifying affected stakeholders (neighbours) within a 100 metre buffer to a planned operation within a plantation (a legal requirement); notification of operations that could potentially impact stakeholders are lodged on the Forico internet based “Forest Activity” portal. This interactive map enables interested stakeholders to be informed of these scheduled activities and operations. Operational activities identified on the interactive map, include:

• Spraying operations (both aerial and ground applications), • low intensity ecological burning and hazard reduction burning;

This interactive tool enables supporting information to be provided, that details the:

• Plantation name and area; • General locality; • Proposed spraying application technique; • Proposed timeframe; • Forico Contact; • Co-ordinates to be included on interactive map; • Pesticide proposed to be applied.

Individuals can subscribe to receive alerts from Forico when any activity classified above is within 10 kilometres of the specified location. This internet based system does not replace the legal obligation to notify neighbours directly, but enables a wider audience to gauge upcoming planned Forico operations.

6.1.4 Compliance with Council Consultation Obligations and Requirements

In Tasmania, a requirement of the Forest Practices Act 1985, Forico must submit a 3-year plan of operations to relevant Local Governments and a copy supplied to the Forest Practices Authority (FPA) each year. The plan must detail the locations of the land from which timber is intended to be harvested, the approximate volumes of timber intended to be carted over each council’s infrastructure and the reforestation methods for each location. The purpose of this process is to promote, engage and encourage Local Government participation and facilitate public participation in the planning process.

Representatives met with Local Government Authorities and presented a 3-year plan of operations on three separate briefings during May 2016. Following this consultation, the 3-year plans were forwarded to the FPA as required. Meetings were held for North and North-eastern Tasmanian specific councils on 5 May 2016, and North-western councils on the 9 May 2016, and Southern Tasmanian councils on the 27 of May 2016.

6.2 Cultural or Social Needs and Values

Forico manages a number of cultural heritage sites – both Aboriginal and European - within the Tasmanian Forest Estate. Aboriginal cultural heritage site locations are strictly regulated and the information cannot be disclosed due to the significant risk of these sites being disturbed, damaged and the potential of interference.

With respect to European heritage, Forico manages a substantial amount of freehold land in Tasmania. The largest contiguous area is Surrey Hills in North-west Tasmania comprising approximately 60,000 hectares. Van Diemen’s Land Company (VDL) first cleared suitable land for agriculture, then established and created a grazing station at Surrey Hills in the early 1800s. Numerous historical sites (Homestead, Trappers huts, outstations, stockyards, mines) were established and are still preserved on the property. The Hampshire Hills Station and the associated Brick Pits are listed on the Tasmanian Heritage Register, under the state Historic Heritage Act 1995 legislation.

Unfortunately, there are unauthorised activities that occur across the Tasmanian Forest Estate by external parties. All reasonable efforts are adopted to restrict trespassing, illegal firewood removal, illegal hunting of animals. Where supporting evidence is available, information is passed to the relevant authority for prosecution.


http://www.forico.com.au)/


6.2.1 Annual Harvest of Non Timber Forest Products

Forico has recently granted access permits to enable (i) native pepper berry harvesting, and (ii) apiary to commence sustainable operations within the Permanent (freehold) Estate.

During the reporting period, 2,000 kilograms of honey was harvested. No native pepper harvesting occurred during the same period.

6.2.2 Forest Area Reserved for Aboriginal, Cultural and Heritage Values in the Permanent Estate

Table 2 illustrates that the forest area reserved for indigenous, cultural and heritage values within the Forico Permanent Estate is 441 hectares of the informal reserved area (0.3%). Whilst not a large area when compared to the other protected values, the area reserved for each specific site is usually quite small and concentrated when compared to flora or fauna reserves.

6.2.3 The Percentage of Cultural Surveys Formally Requested as Required in the Forest Practices Plan

Monitoring of cultural surveys required under the Forest Practices Act 1985. It ensures appropriate legislative identification protocols are followed to enable effective management of cultural values. Forico has also received a copy of known locations of Aboriginal items within the Forico Permanent Estate provided by Aboriginal Heritage Tasmania (AHT) to assist in the process of identifying known sites throughout the FMU.

Given the increased level of operational activity and the commitments under the Forest Practices Code 2015 - 16 physical cultural heritage surveys were required during the reporting period. Any identified cultural site is reported through to the relevant government agency.

However, during the planning process of any Forest Practices Plan, one of the criteria is to assess the cultural heritage values (Aboriginal, European heritage and other cultural values) that may or may not be located on site in every FPP.


7. MAINTENANCE AND ENHANCEMENT OF SOCIO-ECONOMIC BENEFITS

7.1 Production and Consumption

During the previous financial year, gross revenue within the business was approximately $125 million. This is projected to increase to $140 million during 2016 – 2017. Interestingly, 80% of gross revenue is spent on goods and services within Tasmania.

As detailed throughout the Sustainable Forest Management Report 2015 – 2016, there is an intention of Forico to increase the Company’s operational capacity and increase business activity, through the implementation of innovative solutions. These goals require significant operational costs, with associated budgets prepared to achieve these sustainable forest management principles.

Establishment of plantation seedlings increased from 3,500 hectares in 2015 at a capital cost of approximately $6 million; to a proposed establishment program of 6,500 hectares in 2016 with a capital cost of $15 million. This increase can be attributed to planting not only recently harvested plantations, but also fallow land that requires re-establishment. Into the future Forico will be establishing between 4,000 – 6,000 hectares of plantations annually.

To achieve these targets, additional seed will be required within the Forico Nursery to be sown, grown and subsequently dispatched. Harvesting programs will increase, in accordance with sustainable yields. To achieve these sustainable yield predictions, annual production of forest products will target between 1.3 – 1.4 million green metric tonnes of forest product. Third party supplies will supplement these deliveries to achieve a projected wood fibre export volume of approximately 1.6 million tonnes in 2016 – 2017.

To meet these ambitious targets will require the availability of skilled and competent contractors, operators, and suppliers.

7.2 Investment in the Forest Sector

Investment and expenditure in forest research, development and training has been continued through collaborations with industry organisations including alternative fertiliser use treatments, tree improvement programs and harvesting efficiency. Forico is a member of industry research co-operatives including:

• Australian Forest Operations Research Alliance (AFORA) - investigations in forest supply operations; • Southern Tree Breeding Association (STBA) – investigating tree improvement programs; • Forest and Wood Products Association (FWPA).

Forico is also involved with the University of Tasmania (UTAS), Forest Practices Authority (FPA) and Department of Primary Industries Parks Water and Environment (DPIPWE) Threatened Species Section, to conduct research in biodiversity and conservation areas of interest throughout the FMU.

Forico is a founding partner (with the CEO the current Chair) of the Arbre Forest Industries Training and Careers Hub based in Tasmania that was established in September 2015. The purpose of the hub is to facilitate the promotion of the forest industry training and careers; the provision of information on those careers; to provide a training facility with in-field capability through endorsed and accredited training providers; and to act as a conduit for people seeking a career in the forest industry. The hub will allow the forest industry to meet the current and future needs of an expanding forest industry across a range of operations, including harvesting, transport and silviculture. Pivotal industrial stakeholders will fund management and the ongoing operation including Forico.

Forico is an integral member of the Australian Research Council (ARC) Training Centre that commenced operations in January 2016 to provide the Tasmanian forest industry with the opportunity to develop and retain new research resources. The centre will focus on linking resource properties and management decisions to final market demands and ensuring that product requirements also align to current industry discussions around supply chain structures and efficiencies. The ARC Training Centre supports three postdoctoral and 10 PhD students over an initial five year period. In addition to a substantial funding input from Forico (incorporating in-kind support) – financial contributions have been received from Forest and Wood Products Association (FWPA), SFM Environmental Solutions, Neville Smith Forest Products, Greening Australia, Island Workshops and the University of Tasmania.

Forico retains membership to committees and forums including the:

• Australian Forest Products Association (AFPA); • Tasmanian Forest Industry Safety Standards Committee; • Tasmanian Agricultural Productivity Group (TAPG); • Forest Stewardship Council (FSC) Australia; • Australian Forestry Standard Limited.

Forico also maintain relationships with Natural Resource Management (NRM) groups, schools and universities on a broad spectrum of issues.


7.3 Employment and the Community

7.3.1 Number of Company Employees

35 employees commenced employment with Forico on the 5th September 2014. As operational activity has increased through harvesting and associated site preparation, maintenance, natural forest management enhancement activities, at 30 June 2015 – this number had increased to 58 direct employees (excluding casual employees, contractors and their personnel). At 30 June 2016, this had further increased to 68 direct employees and 11 casuals (62.7 and 8.95 full time equivalents (FTE) respectively).

This 22% increase in direct full time employment over the 2015-2016 period clearly demonstrates Forico’s commitment to the regional community of Tasmania and the intention to move the business forward.

Date Employee Numbers At 5 September 2014 35 30 June 2015 58 30 June 2016 68

Table 11: Comparison of employee numbers by year

Salaries are benchmarked against similar forestry and related industries to ensure staff are paid at a commensurate rate to industry standards.

Photograph 28: Fibre Technology employee

7.3.2 Number of Forest Contractors and Their Employees Engaged

During the financial year, silvicultural, harvesting, haulage, and processing contractors have become engaged by Forico to ensure production levels are achieved to meet customer demand and plantations are re-established to achieve sustainable forest management objectives. In excess of 350 contractor employees are currently directly engaged by Forico. In terms of the flow on affects in the regional community, each direct job assists in the generation of a further three indirect jobs (ie: the multiplier effect). Forico is assisting in regenerating regional Tasmanian communities.


7.4 Recreation and Tourism

7.4.1 Number of Recreational Visitors

Forico has approved a Freehold Access Procedure, to clearly define how the Company addresses queries with respect to accessing the Forico FMU for social and recreational activities, whilst at the same time ensuring Forico’s duty of care responsibilities are not compromised. New or existing research and monitoring programs have also been encouraged and granted throughout the Forico permanent forest estate.

490 anglers (an increase from 150 in 2014 – 2015), were provided access to Talbots Lagoon (Surrey Hills, north west Tasmania) to carry out fly-fishing on a recreational basis (Source: IFS Tasmania).

Photograph 29: Valentines Peak viewed from Talbots Lagoon, Surrey Hills

7.4.2 Total number of Lost Time Injuries (LTI) for Forico Employees

Forico is committed to reduce the number of lost time injuries by managing risk to employees and working with medical providers to achieve the best possible outcomes for injured workers. A lost-time injury is defined as “an occurrence that resulted in a fatality, permanent disability or lost time from work of one day / shift or more”.

Lost-time injury frequency rates (LTIFR) are the number of lost-time injuries within a given accounting period relative to the total number of hours worked in the same accounting period. During the period between 1 July 2015 and 30 June 2016, there was 1 LTI for Forico employees, equating to a 12 month rolling average LTIFR of 7.55 (LTIFR per 1 million hours worked) as at 30 June 2016.

Date LTI LTIFR 30 June 2015 1 14.44 30 June 2016 1 7.55

Table 12: Comparison of LTI and LTIFR


8. APPENDIX I. SUMMARY OF KEY PREFORMANCE INDICATORS

INDICATOR 2014 - 2015 2015 - 2016

Plantation (hectares) 95,662 96,242 Natural Vegetation (hectares) 79,384 81,194 Other (hectares) 3,537 3,572 Total FMU (hectares) 178,583 181,008 Total Product Harvested (GMT) 880,200 1,333,104

• Eucalyptus nitens 761,622 1,152,351 • Eucalyptus globulus 113,042 179,073 • Pinus radiata 5,536 1,680

Eucalypt Harvested (GMT) 874,664 1,331,424 Eucalypt grown (GMT) 1,423,708 1,382,224 Ratio 1:1.6 1:1.04 Wood Fibre Exported (GMT) 862,469 1,252,729 Carbon Sequestered (GMT) 116,733 105,626 Forest Operations Monitored 100% (267/267) 100% (395/395) Harvesting Completion Notices 100% (83/83) 100% (79/79) Site Preparation Area (hectares) 2,353 5,082 Plantation Establishment (hectares) 1,154 3,898 Survival Counts 93.3% 94.4% Unplanned Fires - Native Forest (hectares) 1.3 93.0 Unplanned Fires – Plantation (hectares) 8.2 276.9 Low Intensity Planned Burns (hectares) 1,092 67 Stakeholder issues raised 288 202 Cultural Heritage Surveys 7 16 Forico Direct Employees 58 68 Contractor Workforce 190 350 Lost Time Injuries (LTI) 1 1 Lost Time Injury Rate (LTIFR) 14.44 7.55

sustainable forest management report 2015 – 2016 forest management report 2015 2016...2015 –...

Documents